An unprecedented wave of tanker acquisitions is disrupting the global oil transportation market. According to a Bloomberg report on February 16 citing several industry veterans, South Korea's Sinokor Group has rapidly purchased or chartered a significant number of vessels over the past one to two months and now controls approximately 120 Very Large Crude Carriers (VLCCs). Some seasoned market participants stated that the scale of the fleet accumulated by this company is unlike anything they have witnessed in their careers. Even more striking is the presence of a global shipping giant behind the Seoul-based shipping firm. Bloomberg reported that when at least two major shipowners negotiated vessel sales with Sinokor, they discovered the ultimate buyer was actually an entity linked to Gianluigi Aponte, the billionaire founder of a vast shipping empire that includes Mediterranean Shipping Company (MSC). The specific relationship between the two companies and how many Sinokor transactions involve MSC remains unclear. This aggressive acquisition spree has already sparked panic in the market. Anxious charterers are scrambling to book space to hedge against further price increases, causing freight costs to surge dramatically. According to data from Clarkson Research Services, crude tanker earnings are experiencing their strongest start to a year in over three decades. The market turmoil is also impacting physical oil prices. Traders indicate that spot crude prices in some regions are being suppressed due to disarray in the shipping market. Ole Hjertaker, CEO of shipping company SFL Corp., stated on an analyst call last week:
"Essentially, one party or a group of collaborators controls about one-third of the available or trading VLCC fleet."
The market concentration is unprecedented. The tanker market is a niche but vital link in global oil trade, long dominated by shipowners from maritime powers like Greece and Norway, as well as major oil interests such as Saudi Arabia. While Sinokor is a lesser-known company rooted in container shipping and has engaged in market-tightening charter operations before, at least one market participant noted the current trading frenzy far surpasses any of its previous actions. The exact scale of the acquisition is difficult to measure precisely, as it includes purchased, chartered, and vessels already controlled by Sinokor. Some market observers estimate the group controls fewer than 120 ships. However, Svein Moxnes Harfjeld, CEO of tanker company DHT Holdings, described it on an investor call as a "fundamental shift" in the consolidation of global fleet ownership. He pointed out:
"We can be certain this is happening and it is having an impact. Whether it's spot market freight rates, customer demand for period charters, or the value of second-hand VLCCs. This consolidation is altering pricing dynamics and putting pressure on the timely availability of vessels."
The acquisition wave has created a massive surge in freight rates. Benchmark earnings for VLCCs, capable of carrying 2 million barrels of oil, have now surpassed $120,000 per day, having increased more than fourfold over the past month. Market participants directly attribute part of this rise to Sinokor's transactions. The acquisition targets have been concentrated on older vessels, aged 10 years and above, whose resale prices have been climbing in recent weeks, thereby pushing up long-term charter costs. Shipowners are capitalizing on increased asset values by raising charter rates. Broader supply and demand dynamics are also contributing. Recent months have seen a spike in demand for non-sanctioned tankers, driven by increased supply in the global oil market on one hand, and a significant portion of the fleet being restricted by Western sanctions on the other. These factors together are boosting effective capacity utilization, lifting spot earnings, and setting the stage for potential future price spikes. For billionaire Gianluigi Aponte, these acquisitions represent another step in expanding his global shipping footprint. Last year, he became a key investor in a consortium seeking to acquire a large stake in two ports along the Panama Canal. In 2022, after acquiring hundreds of vessels, Aponte's Mediterranean Shipping Company (MSC) surpassed Maersk to become the world's largest container shipping line, ending the latter's decades-long dominance. While the specific arrangement between Sinokor and Aponte is not clear, the two have prior business connections. According to Clarkson Research data, Sinokor sold a series of container ships to MSC late last year. Even by the most conservative estimates, this acquisition spree has cost around $1.5 billion, with some market participants believing the total could be closer to $3 billion. The shipping industry is known for its boom-and-bust cycles, where periods of high earnings typically trigger a wave of new vessel orders, leading to an influx of new ships years later. The high rates seen in recent weeks have already started to drive an increase in tanker orders; data from Clarkson Research shows the orderbook as a percentage of the current fleet has reached its highest level in a decade. Aristidis Alafouzos, CEO of Okeanis Eco Tankers, commented:
"This unprecedented market consolidation, undertaken by a buyer with substantial financial resources, is happening as market fundamentals continue to tighten. If you have tankers available today and the commercial capability to fully capture a market like this, it all creates an exceptional opportunity."
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